Business

Contract Logistics Vs 3PL(third-party logistics)

Contract Logistics Vs 3PL(third-party logistics)

Trade and ways of doing business have changed since the pandemic Covid-19. The concept of E-commerce has succeeded the pandemic. People now prefer to shop online, by staying at home, and being safe from the pandemic. There had been a lot of supply chain challenges for companies especially e-commerce companies during pandemics. Supply chain distortion such as port congestions, raw material shortages, shipping rates fluctuation, and container shortages. Companies have been trying to overcome such issues. Contract logistics and 3pl contracts are just a part of the solution for the supply chain challenges. 3PL are different from freight forwarders. 

In today’s blog, we will discuss in detail contract logistics, contract logistics vs 3PL, contract shipping, outsourcing transportation. This blog is very helpful for new e-commerce businesses. In today’s blog, we will discuss in detail contract logistics, contract logistics vs 3PL, contract shipping, outsourcing transportation. This blog is very helpful for new e-commerce businesses.

Contract Logistics 

Its definition implies it is related to the management of the local transportation as well as the international transportation of the products. Some individuals get wrongly confused that the contract logistics is related to the shipping or warehouse management or fulfillment of orders.

Contract Logistics vs 3PL

Contract logistics and 3pl third-party logistics have only one factor of delivery management of the product in common. Else from this factor, both terms are different.

CL is related to the management of transportation of local and overseas deliveries. While the 3PL logistics contract is related to inventory management, warehouse management, order fulfillment etc. third party logistics contract offers its customer more facilities as compared to CL.

Major aspects of 3PL

There are a lot of facilities provided by the 3PL in excess to CL terms. If we compare freight forwarder vs 3PL, we would be able to understand that 3PL offers a lot more facilities than freight forwarder.

some of the major are as follows.

Proper management of inventory:

3PL offers proper inventory management to its customer. 3PL services help E-commerce businesses to achieve the optimal level of inventory. By doing so the company can achieve its profitability goals better.

Order Fulfillments

When we compare logistics vs transportation then we would be able to understand that the 3PL is a complete logistic solution. It is just not only managing transportation but also managing the order fulfillment of the company.

Real-time tracking of shipment

3PLoffersr its customer the facility to track the shipment in real-time. This facility is very helpful in attaining higher customer satisfaction levels. Nowadays the

Conclusion

E-commerce businesses have been facing a lot of challenges during the pandemic, like container deficiencies, raw material shortages and port congestion. Companies are offering the facilities like CL and 3pl services to the customer to overcome supply chain challenges. CL are related to the management of the transportation local and abroad only. While the 3PL deal in excess to this with warehouse management, inventory management, fulfillment of orders, delivery management. 3PL also provides the facility of real time tracking of shipments to its customer. 3PL services are much better than just contract logistics when compared.

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